IRS Update: Reporting Stock Sales on Form 8949

Below is a reminder of what additional information you may need to enter on new Form 8949 for stock sales and what to do with the Form 1099-Ks that your self-employed taxpayers may receive:

Reporting Stock Sales on New Form 8949

Remember that beginning with 2011 returns, all capital transactions that were reported directly on Schedule D in the past will now be reported on new Form 8949 (Sales and Other Dispositions of Other Assets).

As you enter sales on Form 8949 you will notice the following new fields that may require an entry:

• Transaction type checkbox (Box ABC)
• Code field (column b)
• Adjustment to gain/loss field (column g)

Learn more about reporting stock sales on Form 8949.

Form 1099-K and Schedule C, E, and F

Remember that the IRS has deferred the requirement that income reported on new Form 1099-K must be reported on a separate line of Schedule C, E, and F.

The requirement that the Form 1099-K be issued by merchant card providers and e-commerce providers (such as PayPal) is not affected, so taxpayers that receive income from credit cards, debit cards, or third party e-commerce providers will still have a Form 1099-K mailed to them. Learn more

Click here to read the entire CrossLink Tax Update which includes more information on reporting stock sales and how to report income received from credit/debit cards.